Economic impact on Japan by the tourism industry is estimated at 16 trillion JPY or more in 10 years later

Travel & Tourism ECONOMIC IMPACT 2016 JAPAN, issued by World Travel & Tourism Council (WTTC), finds that direct contribution to GDP by the travel and tourism industry was 12.9 trillion JPY in 2015 and is estimated at 13.4 trillion JPY in 2016 (+3.7%). In 2026, the amount is expected to reach 16.4 trillion JPY with an annual growth of 2.1%. The ratio of direct contribution to GDP may rise from 2.6% in 2015 to 3.0% in 2026.

The growth rate of 3.7% in 2016 is higher than the average growth rate of 3.3% in the world, but lower than the average growth rate of 5.5% in Asia Pacific. Higher growth rates are expected to be found in China (+6.1%), Thailand (+4.3%) and Australia (+4.1%).

Indirect contribution to GDP (including investments for the future, promotional expenses by the government or businesses derived from the travel and tourism industry) is forecasted at 39.4 trillion JPY in 2015, 40.8 trillion JPY (+3.5%) and to reach 48.5 trillion JPY in 2026 with an annual growth of 1.7%.

Also, the report says that direct job creation in the travel-related industries may increase by 1.3% year on year to 1,239,000 in 2016 and reach 1,343,000 in 2026 with an annual growth of 0.8%. The ratio of direct jobs to the total in Japan is expected to rise from 7.4% in 2015 to 8.4% in 2026.

The report has forecasted that international visitors to Japan may reach 20,726,000 in 2016 and further increase to 28,669,000 in 2026. Direct consumption related to travel and tourism is expected to increase by 11.7% from 3.1 trillion JPY in 2015 to 3.5 trillion JPY in 2016 and reach 5.2 trillion JPY in 2026 with an annual growth of 4.0%.

Capital investments for travel and tourism in Japan is also forecasted to increase by 3.5% in 2016 from 4 trillion JPY in 2015 and reach 4.9 trillion JPY in 2026.